Evotec, Nyxoah, Bayer – A lot of excitement in the healthcare industry

Evotec – Many interested parties

There is a lot going on around Evotec. First, Triton Partners' engagement with the German biotechnology company Evotec caused a stir. The financial investor increased its stake to 9.99% in a very short period of time, fueling speculation of a possible takeover bid. Despite intensive discussions with Evotec's management board, no final decision has yet been taken. However, in order to acquire more than 10% of the shares, Triton would have to overcome regulatory hurdles and win the support of significant shareholders such as Novo Holdings and Mubadala Investment.

Then, the American group Halozyme Therapeutics also announced its interest in acquiring Evotec. With an offer of EUR 11 per share, Halozyme values the German company at around EUR 2 billion. The offer represents a considerable premium on the last traded price of the share and has provided positive impetus in the market. Evotec's share price reacted with a significant increase, while the news also caused mixed reactions at Halozyme, reflected in a slight decline in its own share price.

In its latest quarterly report, Evotec demonstrated both strengths and weaknesses.. While the Just – Evotec Biologics segment achieved a remarkable 74% revenue growth, the Shared R&D segment suffered from a weak market environment and recorded a decline in revenues. The Company's adjusted EBITDA fell to EUR -6 million, mainly due to high fixed costs. Nevertheless, Evotec showed progress in its operations and remains committed to its annual targets, which include revenues of between EUR 790 million and EUR 820 million. The Company is pursuing a strategic transformation to achieve profitable growth in the future. The share is currently trading at EUR 10.36.

Nyxoah – On the verge of FDA approval

Nyxoah, a Belgian medical technology company, is at the forefront of innovative solutions for obstructive sleep apnea (OSA). Its powerful contribution is the Genio system, a novel, patient-centric neurostimulation system that is already applied in Europe and is currently seeking approval in the United States. Genio is a two-component solution consisting of an implantable neurostimulator and an external wearable. During sleep, the neurostimulator causes small forward movements of the back of the tongue thus preventing the upper airways from, being blocked. Unlike traditional CPAP machines, the mask solution, which users often deem uncomfortable, Genio is more comfortable to wear, making it a preferred alternative for many patients.
In its most recent quarterly report, Nyxoah was able to convince investors with a 30% increase in sales to EUR 1.3 million, even though the Company continues to make losses. These losses, which have risen to EUR 15 million, reflect increased commercial activities as well as higher R&D investments. Despite this, the Company's finances remain stable thanks to targeted capital measures: In October 2024 alone, EUR 24.6 million were secured from a U.S.-based healthcare investor through an ATM offering. Nyxoah's CEO, Olivier Taelman, is optimistic and looks forward to the upcoming US market launch after the expected FDA approval.
Based on the positive data from their DREAM study, Nyxoah has completed and submitted the fourth and final module of their approval application to the FDA. The company expects approval for Genio in the USA in the first quarter of 2025, where the technology will soon establish itself as a respected product in the fight against obstructive sleep apnea, judging by the development of sales activities in Europe. These developments promise an exciting 2025 for Nyxoah and its shareholders. The stock is currently trading at USD 8.18 on NASDAQ. With FDA approval, the stock could revisit highs of USD 20.

Bayer – Quarterly figures and developments at Bayer

Bayer's quarterly figures for the third quarter show a mixed picture. Sales rose slightly by 1% to EUR 10 billion, but EBITDA before special items fell by a significant 26% to EUR 1.3 billion. The Pharmaceuticals and Crop Science divisions, in particular, weighed on earnings. While the pharmaceutical sector is suffering from pressure from generic drugs for Xarelto, the Crop Science segment is being affected by difficult weather conditions in Latin America and a decline in corn and soybean sales. Growth in the Consumer Health division was positive, with sales up 6%.

During the earnings call, CEO Bill Anderson highlighted both progress and challenges. In pharmaceuticals, Bayer is scoring with new products such as Nubeqa and Kerendia, which are showing significant growth rates. By contrast, the Company is facing regulatory hurdles and price pressure in the Crop Science segment. Anderson emphasized that despite these headwinds, the Company is on track to achieve its full-year targets, even though the environment remains challenging, particularly in the agriculture sector. Optimizing costs and reducing debt therefore remains a key management concern.

Despite the current challenges, Bayer still seems to have potential. Given a declining market in the agrochemical sector and increasing threats from generics in pharmaceuticals, the Company expects modest sales and earnings development for 2025. However, investors may want to consider long-term opportunities, particularly the expected sales growth in innovative pharmaceutical products. With the current share price discount, Bayer may offer an attractive entry point for patient investors betting on a medium to long-term recovery. The share price appears to be bottoming out at around EUR 20 and is currently trading at EUR 20.30.

The healthcare industry is currently in a state of flux, characterized by significant developments at Evotec, Nyxoah and Bayer. Evotec is facing takeover interest from both Triton Partners and Halozyme, which has pushed up the share price noticeably. At the same time, Nyxoah, a Belgian medical technology company, is seeking FDA approval for its Genio system, which marks a promising US market launch. Bayer, on the other hand, disappointed with moderate quarterly figures, particularly in the Pharmaceuticals and Crop Science divisions, which weighed on the share price. Despite the challenges, Bayer remains an attractive long-term investment for investors.